The Cruelest Month for Munis

Municipal bonds historically sell off in March, as few bonds mature that generate proceeds in need of investment. Bargain-hunters, take note.

Bond shoppers having a hard time finding bargains ought to keep an eye on the muni market this month.

March has been the worst-performing month for municipal bonds for years, producing positive returns only five times since 1990. Investors often sell munis ahead of April's tax deadline, while March sees comparatively few maturing bonds that generate proceeds in need of reinvestment. Hence, the typical slump.